The requirements for opening a business bank account are not necessarily pocket-tearing, nor are they bloodsucking before they can be processed. Why? Most of these requirements are documents which are readily available and can be got within a snap if one will take the right steps to the offices where they are processed.
There are a thousand reasons why having a business bank account for your business is important. It is because a business bank account is necessary to keep your business and personal finances separate with absolute efficiency. Simply put, it helps you manage your business finances in a professional and respectful manner, then separate those funds from your personal finances. Here are some other benefits of having or opening a business bank account:
- Limited liability protection
- Purchase protection for customers
- Availability of Credit Options
Some banks, for instance GTB in Nigeria, create this type of business account specifically to target small medium enterprise that has a monthly turnover of at least N50 million. This account is designed to help and encourage the SME segment of the economy, help them improve, and provide them with chances for massive financial growth. For this bank, the minimum requirements apart from the ones that will be listed for Nigerian business potentials below are:
The Requirements for Opening a Business Bank Account.
There is no doubt that opening a business bank account needs you to put more effort than you need to do in opening a personal account. This is mainly because of the documents you will be required to possess as the requirements for opening a business bank account. What of the brand name you will need to decide for your company/business, and of course, the fact that you will also need to get a license in order for you experience efficient running?
This article will be concentrated on showing some of the required items for the opening of business bank account both in Nigeria and generally in the US, or everywhere else in the world:
1. Having Business Bank Account in Nigeria
Basically, these documents and necessities are some of the requirements for opening a business bank account, particularly in Nigeria are:
- Secure a CAC-signed certificate for your business
- Have Tax Identification Number for the company
- Provide passports photograph and other documents of the individual signatories to the business
- Possess a completed corporate account opening form signed by the company’s designated signatories and the directors of the company
- Board Resolution authorizing the opening of the account and approving the account signatories.
- Bank Verification Number of signatories of directors
- Copy of the company certificate and other incorporation documents.
- .Residential address of the directors.
- Two reference forms by corporate account holders.
- Valid identification of the directors such as international passport, driver’s license, etc.
- Utility bill of business addresses such as the Power Holding Company of Nigeria (PHCN), water bill, Lagos Waste Management Authority (LAWMA), etc.
- Evidence of Special Control Unit Against Money Laundering (SCUML) registration for companies categorize as DNFI.
- Work permit for foreigner (In case of the presence of a foreigner)
2. Business Account Requirements in US
- Employer Identification Number (EIN)
Most banks require business customers to provide their employer identification number (EIN) in order to open a business bank account, though some may permit sole proprietors to open a small business account with just their Social Security Number. EINs are also used to prevent identity theft, fraud and money laundering as one of the requirements for opening a business bank account.
- Personal Identification Documents
Another one of the requirements for opening a business bank account is the PID. This means your bank will want to see a driver’s license, passport, or another form of state-issued identification to prove you are who you say you are. This further allow trust and the opening of business account for your business.
- Ownership Agreements
If you’re running a partnership or a corporation, you and the other owners will need to create a partnership or operating agreement. This will outline each owner’s rights and responsibilities as well as how the business will operate.
- Business License
Your bank needs proof that your business has the appropriate licenses before it will enable you to open a business bank account. The requirements to obtain a business license vary depending on where you live, so do some research to find out what’s required in your area.
- Monthly Revenue Documents
Businesses interested in opening a merchant services account to process debit and credit card transactions should provide their bank with details of their average monthly credit card revenue. Startups may not have any prior credit card revenue but they should have an estimate of how much they expect.
You are expected to study and closely analyze the kind of business account or accounts that will be most efficient for you as various banks have their options listed out for customers or business owners who will open business bank account for their business organizations. Moreover, there also different types of business bank accounts.
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